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Any small sellers quitting ebay over the $600 threshold?
I've been a junk collector for decades. Now I want to sell MY stuff and Biden wants to steal my money by making me pay tax for selling my own junk collection. Anyone else thinking of quitting ebay for that reason. I just can't
5 comments
mega-ma-roo
·3 years agoOver 1,900 items sold with over 1,300 feedback as a seller, I can't help but wonder how much back tax might be owed. Might be a good idea to quit selling at that.
mr_lincoln
Mentor3 years ago@nevadacoz You need to check your own State's web site on reporting the minimum threshold for selling personal items ... our state has a $ 500 minimum if memory serves. Regardless of what you sell you need to report it ... so if you haven't been doing that then you have actually been the one stealing money from the Government ...
shipscript
·3 years ago@nevadacoz
"Collecting" can actually be defined by the IRS as a hobby, with separate rules. Then there are the closet cleaners and garage cleaners, who sell their personal items at a loss and who were previously of no interest to the IRS. Those will soon find themselves preparing extra tax schedules in order to list expenses to offset the amounts reported on a 1099-K. Some will just apply the 1099 data as income and overpay the IRS because it might be cheaper than the pain and suffering of detailed expense accounting or hiring a tax preparer.
The IRS postponed the requirement for 2022, but it will go into effect for the 2023 tax year unless congress revises the law.
eBay has pushed back against the low threshold that adversely affects those just liquidating household items. However, I suspect there will be many of these casual sellers who will decide that online selling is more work than it is worth if the seller also has to hire a tax professional and dig up old records, when none were previously required. The thrifts will probably see an influx of items and there may be more garage sales, with the end result that the same items will still appear on eBay via taxable business operations.
kensgiftshop
·3 years agoNo, I already report all my income so it doesn't matter if Ebay reports it or not.
lady_madonna
Mentor3 years ago@nevadacoz
The $600 threshold for receiving a 1099-K has been postponed. (unless you are located in a state that has a lower threshold than the federal threshold)
Per Ebay: In December 2022, the IRS announced that it is delaying the $600 reporting threshold for Form 1099-K that was set to take effect during the 2022 tax year. The new reporting threshold has been pushed back one year to allow online sellers more time to prepare for the change.
https://www.irs.gov/newsroom/irs-announces-delay-for-implementation-of-600-reporting-threshold-for-third-party-payment-platforms-forms-1099-k
You are always required to report your income when filing your taxes regardless if you have received a 1099-K or not.
The president did not have anything to do with this.